Mr. David Stein reports
KUYA ANNOUNCES CLOSING OF FIRST TRANCHE OF NON-BROKERED PRIVATE PLACEMENT PURSUANT TO THE LISTED ISSUER EXEMPTION
Kuya Silver Corp. has closed the first tranche of a non-brokered private placement pursuant to the listed issuer financing exemption under Part 5A of National Instrument 45-106 -- Prospectus Exemptions, by issuing 10,349,000 units at a price of 25 cents per unit for aggregate gross proceeds of $2,587,250. The company filed a Form 45-106F19 offering document on Nov. 9, 2023, related to the offering.
Pursuant to the offering, each unit consisted of one common share in the capital of the company and one common share purchase warrant. Each warrant entitles the holder thereof to acquire one additional common share at an exercise price of 37 cents per common share for a period of 24 months from the date of issuance. The warrants are subject to accelerated expiration whereby if the closing trading price of the common shares on the Canadian Securities Exchange, or such other stock exchange where the majority of the trading volume occurs, for any period of 15 consecutive trading days equals or exceeds 50 cents, the company may, upon issuing a press release, accelerate the expiry date of the warrants to the date that is 15 days following the date of the acceleration notice. If the warrants are not exercised by the accelerated expiry date, the warrants will expire and be of no further force or effect.
The units issued in the offering are not subject to any statutory hold period under applicable Canadian securities laws, subject to limitations prescribed by the Life exemption.
In connection with the first tranche, the company paid fees to qualified parties in accordance with the policies of the exchange, being a cash commission of $104,985, which was 6.0 per cent on total proceeds received from subscribers introduced to the company by each finder and issued 419,940 in non-transferable common share purchase warrants, which was 6.0 per cent of the total units issued to subscribers introduced to the company by each finder. Each finder's warrant issued under the first tranche entitles the holder thereof to acquire one common share at an exercise price of 25 cents per common share for a period of 24 months from the date of issuance. Securities issued to finders are subject to a statutory hold period expiring April 9, 2024, in accordance with applicable Canadian securities laws.
The company intends to use the net proceeds from the offering for development expenses for the company's Bethania project, the exploration program for the company's Silver Kings project, and general working capital purposes, as more specifically detailed in the offering document.
The securities issued pursuant to the offering have not, nor will they be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons in the absence of U.S. registration or an applicable exemption from the U.S. registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in the United States or in any other jurisdiction in which such offer, solicitation or sale would be unlawful.
About Kuya Silver Corp.
Kuya Silver is a Canadian-based mineral exploration and development company with a focus on acquiring, exploring and advancing precious metals assets in Peru and Canada.
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